Businessweek

Cavitation Technologies, Inc., a development stage company, designs and engineers Nano technology based systems that have potential applications in industrial liquid processing. The company has designed, developed, and patented two proprietary Nano Reactors (Nano Reactor). In addition, it has filed various process patent applications incorporating these patented devices for processing fluids in vegetable oil refining, waste water treatment, algae oil extraction, and alcoholic beverage enhancement. Vegetable Oil Refining The company's first commercial application for its technology is CTi Nano Neutralization. This patent pending process is designed to be incorporated into new and existing soybean, rapeseed, and canola oil chemical refineries. Agreements In May 2012, the company signed a global research and development, marketing, and technology license agreement with the n.v. Desmet Ballestra Group s.a. (Desmet), a Belgian company that is marketing the NANO Neutralization System, the key component of which is the company's reactor to soybean and other vegetable oil refiners. The agreement provides Desmet (licensee) a license and right to develop, design, and supply Nano Reactor systems which incorporate Nano Reactor devices on a global basis but is limited to oils and fats and oleo chemical applications. The company (licensor) remains owner of the patents and patent applications but Desmet would be co-owner of any new process patent applications jointly developed. Desmet, together with its affiliates, is a global engineering and equipment supply firm engaged in the development, design and supply of process equipment for oils and fats processing facilities, including vegetable oil refining, biofuel, oleo chemical, seed crushing, surfactant and detergent markets. The company's Nano Neutralization is designed to be used as an add-on process to an existing neutralization system within soybean and other vegetable oil refineries. Desmet is focused on marketing the company’s Nano Neutralization to vegetable oil refiners. Desmet has relationships with major refiners globally. A significant portion of global vegetable oil refineries include major refiners, such as Archer Daniels Midland Company, Cargill, Inc., and Bunge Limited. Desmet has approximately 40 sales representatives selling in North America, South America, Europe, and Asia. In August 2012, the company entered into a technology and licensing agreement with the GEA Group AG - Westfalia Separator Group GmbH, Oelde, Germany (GEA Westfalia). The companies have agreed to jointly develop and patent new process applications for the company’s Nano Reactor. GEA Westfalia is a worldwide supplier of process equipment to industries, including dairy and beverage. Research and Development For the period ended June 30, 2012, the company's investment in research and development was $152,002. Patents The company’s Cavitation Generator patent was issued during 2011. In addition, it has a patent for its Multi-State Cavitation Device that was issued in 2011. The company also has eight U.S. and eight PCT/ international patent applications pending which apply to the design of the company's reactor and the processes related thereto. Competition The company's competitors include Westfalia, Alfa Laval, and Crown Iron Works. History Cavitation Technologies, Inc. was founded in 2007.